The coal ministry has received valid interest for only six coal mines out of the 27 which were offered for the iron & steel, cement, and captive power plant end-use. Auction of 21 coal mines has been cancelled by the ministry as it received less than three bids for them.
According to the norms of the coal auction under the Coal Mines Nationalisation Act, each mine requires minimum three bids for the government to hold auction.
Jamkhani coal mine, situated in the state of Odisha, has attracted maximum bids including from companies like Vedanta, JSW, Hindalco, JSPL, Rungta Mines and Natural Resources Energy Limited.
"The response to the coal auction has been subdued, mainly because of the market sentiment and also changes in policy," said a source from the coal ministry.
The auction process was incorporated in 2014, post deallocation of 214 coal mines. India has not seen a successful auction of coal mines after the first round where it auctioned 24 coal mines, out of which about 12 are now in production.
(Writing by Wenxin Wu Editing by Alex Guo)
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